Allegiant Travel Company (ALGT - Free Report) reported third-quarter 2021 earnings (excluding $1.52 from non-recurring items) of 66 cents per share, missing the Zacks Consensus Estimate of 70 cents per share. However, the bottom line surged more than 100% on a year-over-year basis. Sentiments regarding air-travel demand are bullish now (due to increased inoculation programs) compared with the year-ago quarter, when the company reported a loss of $4.28 per share.
Operating revenues of $459.5 million beat the Zacks Consensus Estimate of $446.1 million and increased more than 100% on a year-over-year basis.
Quarter in Details
Passenger revenues, which accounted for a bulk (92.2%) of the top line, surged more than 100% on a year-over-year basis. The upside can be attributed to an improvement in air-travel demand.
Air traffic (measured in revenue passenger miles or RPMs) for scheduled service surged 92.6% in the quarter under review. Capacity (measured in available seat miles or ASMs) also increased 25% year over year. Consequently, load factor (percentage of seats filled by passengers) widened 2690 basis points to 76.6% in the reported quarter, as traffic surge outweighed capacity expansion.
Operating cost per available seat miles (CASM), excluding fuel, increased 20.2% year over year. Average fuel cost per gallon (scheduled) surged 66.7% to $2.20 in the quarter. Total scheduled service passenger revenue per available seat miles (TRASM) rose 85.7% to 10.4 cents. The carrier exited the quarter with a fleet size of 106. The same is expected to total 108 by the year-end.
Liquidity
As of Sep 30, 2021, Allegiant Travel’s total unrestricted cash and investments totaled $1,070.9 million compared with $685.3 million at the end of December 2020. Long-term debt and finance lease obligations (net of current maturities and related costs) came in at $1,434.6 million compared with $1,441.8 million reported at the end of 2020.
Q4 Expectations
For the fourth quarter, ASM (for scheduled service) is expected to increase 12-16% from fourth-quarter 2019 figures.
Total system ASM are expected to surge 10-14% from fourth-quarter 2019 figures.
Total operating revenues are expected to move up 0.5-4% from fourth-quarter 2019 actuals.
Fuel cost per gallon is expected to be at $2.55.
2021 Expectations
For 2021, the projection for aircraft, engines and induction costs is unchanged from the previous expectation of $115-$125 million.
The view for capitalized airbus deferred heavy maintenance is unchanged from the prior view of $50-$60 million.
Other airline capital expenditures are now expected between $60 million and $70 million (previous expectation: $40 million and $50 million).
Interest expenses are still expected in the range of $65-$70 million.
Project spending (Sunseeker Resorts Project) for 2021 is expected to be $50-$55 million.
Zacks Rank
Allegiant Travel currently carries a Zacks Rank #5 (Strong Sell). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Sectorial Snapshot
Within the broader Transportation sector, Delta Air Lines (DAL - Free Report) , J.B. Hunt Transport Services (JBHT - Free Report) and Kansas City Southern recently reported third-quarter 2021 results.
Delta reported third-quarter earnings (excluding $1.59 from non-recurring items) of 30 cents per share, outpacing the Zacks Consensus Estimate of 15 cents. Revenues of $9,154 million beat the Zacks Consensus Estimate of $8,370.6 million.
J.B. Hunt reported third-quarter earnings of $1.88 per share, surpassing the Zacks Consensus Estimate of $1.77. Total operating revenues of $3144.8 million outperformed the Zacks Consensus Estimate of $3002.1 million.
Kansas City Southern reported third-quarter earnings (excluding 31 cents from non-recurring items) of $2.02 per share, missing the Zacks Consensus Estimate of $2.07. Quarterly revenues of $744 million surpassed the Zacks Consensus Estimate of $725.9 million.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Allegiant Travel Company (ALGT - Free Report) reported third-quarter 2021 earnings (excluding $1.52 from non-recurring items) of 66 cents per share, missing the Zacks Consensus Estimate of 70 cents per share. However, the bottom line surged more than 100% on a year-over-year basis. Sentiments regarding air-travel demand are bullish now (due to increased inoculation programs) compared with the year-ago quarter, when the company reported a loss of $4.28 per share.
Operating revenues of $459.5 million beat the Zacks Consensus Estimate of $446.1 million and increased more than 100% on a year-over-year basis.
Quarter in Details
Passenger revenues, which accounted for a bulk (92.2%) of the top line, surged more than 100% on a year-over-year basis. The upside can be attributed to an improvement in air-travel demand.
Air traffic (measured in revenue passenger miles or RPMs) for scheduled service surged 92.6% in the quarter under review. Capacity (measured in available seat miles or ASMs) also increased 25% year over year. Consequently, load factor (percentage of seats filled by passengers) widened 2690 basis points to 76.6% in the reported quarter, as traffic surge outweighed capacity expansion.
Operating cost per available seat miles (CASM), excluding fuel, increased 20.2% year over year. Average fuel cost per gallon (scheduled) surged 66.7% to $2.20 in the quarter. Total scheduled service passenger revenue per available seat miles (TRASM) rose 85.7% to 10.4 cents. The carrier exited the quarter with a fleet size of 106. The same is expected to total 108 by the year-end.
Liquidity
As of Sep 30, 2021, Allegiant Travel’s total unrestricted cash and investments totaled $1,070.9 million compared with $685.3 million at the end of December 2020. Long-term debt and finance lease obligations (net of current maturities and related costs) came in at $1,434.6 million compared with $1,441.8 million reported at the end of 2020.
Q4 Expectations
For the fourth quarter, ASM (for scheduled service) is expected to increase 12-16% from fourth-quarter 2019 figures.
Total system ASM are expected to surge 10-14% from fourth-quarter 2019 figures.
Total operating revenues are expected to move up 0.5-4% from fourth-quarter 2019 actuals.
Fuel cost per gallon is expected to be at $2.55.
2021 Expectations
For 2021, the projection for aircraft, engines and induction costs is unchanged from the previous expectation of $115-$125 million.
The view for capitalized airbus deferred heavy maintenance is unchanged from the prior view of $50-$60 million.
Other airline capital expenditures are now expected between $60 million and $70 million (previous expectation: $40 million and $50 million).
Interest expenses are still expected in the range of $65-$70 million.
Project spending (Sunseeker Resorts Project) for 2021 is expected to be $50-$55 million.
Zacks Rank
Allegiant Travel currently carries a Zacks Rank #5 (Strong Sell). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Sectorial Snapshot
Within the broader Transportation sector, Delta Air Lines (DAL - Free Report) , J.B. Hunt Transport Services (JBHT - Free Report) and Kansas City Southern recently reported third-quarter 2021 results.
Delta reported third-quarter earnings (excluding $1.59 from non-recurring items) of 30 cents per share, outpacing the Zacks Consensus Estimate of 15 cents. Revenues of $9,154 million beat the Zacks Consensus Estimate of $8,370.6 million.
J.B. Hunt reported third-quarter earnings of $1.88 per share, surpassing the Zacks Consensus Estimate of $1.77. Total operating revenues of $3144.8 million outperformed the Zacks Consensus Estimate of $3002.1 million.
Kansas City Southern reported third-quarter earnings (excluding 31 cents from non-recurring items) of $2.02 per share, missing the Zacks Consensus Estimate of $2.07. Quarterly revenues of $744 million surpassed the Zacks Consensus Estimate of $725.9 million.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Get the latest research report on DAL - FREE
Get the latest research report on JBHT - FREE
Get the latest research report on ALGT - FREE